Q1. Do I have to file an income tax return?
A person who has a domicile or has resided in Korea for 6 months (183days) or longer within 2 years is subject to income tax on all income derived from both within and outside of Korea.
[Related Law: Article 1, 1-2 of the Income Tax Act]
2. Taxable Income
All earned income a fiscal tax year should be reported including salary and wages, allowances and other employment income, lump sum payments and reportable fringe benefits.
[Related Law: Article 20 of the Income Tax Act]
Q2. When do I have to return?
1. Taxable Period
The taxable period of income tax shall be one year from January 1 to December 31.
The taxable period shall start from the date after the date of a person's arrival in the Republic of Korea to the date of his/her departure.
[Related Law: Article 5 of the Income Tax Act, Article 4 of Enforcement Decree of the Income Tax Act]
2. Taxable Income
Tax on income from wages and salaries shall be levied on a monthly basis.
AirTax pays monthly income tax collected pursuant to Article 150 to the direct tax office by no later than the tenth day of the month following the month in which the date of collection falls, as prescribed by Presidential Decree.
[Related Law: Article 150, 151 of the Income tax Act]
Q3. Why ‘AirTax’?
1. 5% Tax Credit for Taxpayers' Association
All our clients can claim a 5% tax credit on their calculated income tax amounts.
2. Visa Extension
AirTax issues the certificates of tax payment to each client every month after reporting income tax, and these certificates can be submitted as part of your VISA extension application.
Required Documents for VISA Extension
- An Application Form, A copy of Passport and Alien Registration Card, Fee.
- A copy of business registration certificate, a business license(where applicable),
a certificate of investment corporation registration. (for holders only)
- Documents providing the business are normally operating a certificate of income amount,
a certificate of tax payment, etc.
- Acceptable documents for proof of residency.